Alert for crossing

JACKSON

I set up an alert for ARKG for when Slow Stochastics %K(5,1) crosses 20. The alert went off this morning but when i checked a daily stockchart for ARKG the Slow Stochastics is not near 20.
Is the alert based on daily values or is there another additional setting I'm not aware of?
thanks for your help... Kevin

markd

Here's a link that explains (sort of) how scan processing works:

https://support.stockcharts.com/doku.php?id=alerts

A little background might make it clearer. The scan engine considers the most recent intraday scan as the close of the day (even though it isn't). If it WERE the close of the day, and the values the scan found on the latest update would trigger your alert, the alert does trigger and you get notified. But, since its not the close the day, trading continues. The values that triggered your scan may change with trading so that if the scan were run again, your alert would not trigger. So for instance, if K went to 19 it would trigger your alert, but it could later trade back to, say, 25. The alert is valid, because at some point K crossed 20. It turns out it just didn't stay there. If you look at price, you would probably see a tail showing price had moved down and then retraced up again.

Indicator values usually default to the closing price, which changes throughout the day. The high and low can change, too, but with a difference: once a high is made it cannot change to a lower value and a low cannot change to a higher value. So, if you had an indicator based on a high or low and got an alert, you would always see it on the chart, but not necessarily with the close because it can move away from the trigger value.

JACKSON

I'm a visual learner so i guess i'm trying to understand the alert relative to the indicator graphic chart. The graphic is not showing K cross 20 so it begs the question what format would show 20 crossing K?

lmkwin

the 5 minute chart on the gap open down perhaps. Just guessing. Looks like the 5,1 moved below 20 in the 3rd bar.

markd

Maybe none. You just have to believe the alert is correct.

You can get more detail on price action from intraday charts (hourly, 5min, 1min) etc., and you might be able to find parameters that mimic you daily %K parameters. None will match exactly, but some might be close enough. So for instance, on a half hour chart, there are 13 half hours in a daily session. So 5 (your daily K parameter) times 13 is 65, so that would be your parameter for K on the half hour chart. I haven't tried it, so I don't know how it will come out. Try it!

One question to consider though - do you really need to see it? (I understand you want to, but do you need to?) If you are working in a daily time frame, it implies that you are making decisions based on the final update, not the intraday value. The alert just tells you that intraday price action may be close to getting where you want it to be. And sometimes, price will still be at or beyond the alert level when you actually check the chart.

As a matter of trading strategy, it might not be worthwhile to get a jump on your trade (which is what it seems you want). Often there are several chances to get in at a good price, and sometimes, if you get in too early, professionals will do their best to shake you out (especially on obvious trades from indicators with common parameters). If you can recognize the shakeout, that is the time to get in because after that, price won't come back and you won't be holding a loss.